Climate, Parliament Environment Committee approves 2040 target of -90 per cent CO2 with flexibility

Brussels – On the intermediate 2040 climate target of reducing emissions by 90 per cent compared to 1990 levels, this is the week of the European Parliament. After the agreement reached last Wednesday by the member states of the Union—the result of negotiations lasting a night and a day—today came the green light from the EU Parliament’s Environment Committee (ENVI). And already on Thursday the text—a compromise between the European People’s Party (EPP), the Socialists and Democrats (S&D), the Renew Liberals, and the Greens – will be submitted to the plenary for approval: if the plenary supports it, at that point the inter-institutional negotiations, between the Commission, Parliament and Council, can begin in order to arrive at the final version of the document. 

The main elements of ENVI’s text are basically in line with the positions expressed by the Council last week: the possibility, from 2036, for 5 per cent of emission cuts to come from international carbon credits; the postponement of ETS2 to 2028; and the biennial progress report, with the possibility of revising the target for 2040. ENVI’s position on the Commission’s proposal to amend the EU climate law, which sets a new additional, intermediate and binding climate target for the EU by 2040 to reduce net greenhouse gas (GHG) emissions by 90 per cent compared to 1990 levels, was adopted by 55 votes to 32 (0 abstentions). 

For the MEPs, “green transition and improving the EU’s competitiveness go hand in hand.” For this reason, while they support the intermediate target of 2040 to “achieve a climate-neutral EU by 2050,” they also support the flexibilities launched by the Commission and call for them to be extended. In this context, for example—and in line with what the member states did last week—the ENVI Commission sets the share of emission reductions that can be covered by high-quality international carbon credits from partner countries at 5 per cent from 2036, with a pilot period between 2031 and 2035. The Commission’s initial proposal was instead 3% and from 2036. 

The MEPs call for certainty that the credit procedure is subject to “robust safeguards” and also emphasise the possibility of using permanent carbon removals at the national level to offset emissions that are difficult to reduce under the EU Emissions Trading Scheme (ETS), as well as greater flexibility within and between sectors and instruments to achieve the most cost-effective targets possible. Also, in ETS2, which concerns CO2 emissions from combustion in buildings and road transport, there is substantial alignment between the EU Parliament and the member states, postponing the start of the standards from 2027 to 2028. Finally, MEPs ask the Commission to assess progress towards the interim targets every two years, “taking into account the latest scientific data, technological developments, and the EU’s international competitiveness.” 

Among other aspects, the review will assess the state of net removals at the EU level relative to what is needed to reach the 2040 target, emerging challenges, and the potential to improve the global competitiveness of EU industries. The review will also take into account developments in energy prices and their impact on businesses and households. Following the conclusions of the review, the Commission will, if appropriate, propose an amendment to the EU climate law, which could also involve “modifying the 2040 target or taking additional measures to strengthen the support framework,” e.g., to safeguard the EU’s competitiveness, prosperity, and social unity. Furthermore, MEPs are open to the role of biofuels in the decarbonisation of transport—as achieved by Italy in the Council negotiations—and to the possibility of revising the targets if removals by natural carbon sinks, such as forests or soil, are lower than expected. These points, too, are in line with the EU Council’s position. And, therefore, if the mini-plenary adopts the text on Thursday, quick and smooth negotiations with the member states are foreseen.